cc Saturday, December 12, 2015 latimes.com/news L.A. boutique chain Kitson heads toward the exit By SHAN LI TIMES STAFF WRITER ack in Kitson's heyday, paparazzi staked out the B boutique chain to snap photos of tabloid-fodder shoppers like Lindsay Lohan and Paris Hil- ton. But like many of its once-hot celebrity fans, the Los Angeles company has lost the limelight. Kitson has launched a going-out- of-business sale as it prepared to close its 17 retail locations as well as its online shop. James Wong, Kitson's chief For now, shoppers eager to pick up Kitson merchandise can browse the out- restructuring officer, said in a lets, which are papered with “Store Closing” signs. The chain’s first shop statement that Kitson was talking opened on ritzy Robertson Boulevard in 2000. (Luis Sinco) with "interested parties" to pre- serve the brand. The Kitson name But the chain overexpanded, at commerce shops would inevitably could be sold and kept alive as an times opening in areas with high start carrying it as well, sometimes e-commerce site, analysts said, but rents. It also lost its way on the at lower prices, analysts said. its days as a brick-and-mortar re- fashion front, relying heavily in- Outside a Kitson store in West tail chain are most likely over. stead on kitschy gift items such as Hollywood, Zahra Hassanzadeh, It's a dramatic end for a chain embroidered pillows and drinking 23, said she used to frequently that first opened on designer- games. drop by the store to pick up pre- studded Robertson Boulevard in "The key to Kitson is they had sents for friends. 2000. to constantly discover the up-and- But in recent years, the college Kitson made a name for itself comer, the latest and greatest," student from downtown L.A. said as a tastemaker, discovering and said Lloyd Greif, chief executive she's switched to mostly online launching new brands like Wild- of Los Angeles investment bank- shopping. fox Couture. The Robertson store ing firm Greif & Co. "But that's "I find everything on Amazon," was such a draw in the mid-2000s, difficult to keep up. You don't Hassanzadeh said. "Now there are security guards would let in the know when the music will end." so many places to get special little non-famous and non-rich a few at Discovering a new label bene- gifts." a time to ogle the merchandise. fited Kitson only briefly; if a brand Retailers like Kitson are under sold well, department stores and e- pressure, especially as malls opt to nies that cannot from selling low-priced bottled get credit any- water. where else. Kitson went so far as to put pro- For a small vocative signs on its Melrose Ave- chain, that was a nue and Robertson Boulevard large sum of mon- shops saying: "Eric Garcetti, ey, and it fueled a mayor of Los Angeles, condones drive to aggres- corruption, collusion, discrimina- sively expand with tion and fraud at LAX." new shops at the Hudson, for its part, accused Beverly Center Kitson of trying to distract from and Fashion Island the antics of Ross, described by in Newport Beach. Hudson lawyers as berating airport As recently as workers with derogatory and ob- August, a compa- scene language. ny representative Bad publicity aside, Kitson suf- told The Times fered like many companies started that Kitson by creative visionaries — founders planned to open a who simply don't have the busi- foreign flagship ness acumen to effectively manage "in the near fu- a growing operation, Friedman ture." said. But sales "These guys are good when couldn't support they have small companies," the expanded Friedman said. "But eventually Paris Hilton leaving Kitson’s Robertson Boulevard store during the company’s heyday. chain and cover its when you start having multiple debts. stores and are bigger, you have to include more dining and experien- This sum- mer, Spencer Spir- become somewhat structured." tial stores instead of traditional it Holdings Inc., which owns the For now, shoppers eager to pick stores peddling products, said Ron Spirit Halloween costume stores up Kitson merchandise can browse Friedman, head of retail and con- and Spencer's novelty gift shops, the stores —which are papered sumer products at Marcum. He agreed to extend a loan to Kitson with "Store Closing" and "30% to pointed to the new open-air mall, to pay down the loan with Salus, 50% off" signs. the Village at Westfield Topanga, according to the Wall Street Jour- Kitson did not say when its which includes many restaurants nal, citing anonymous sources. stores would close for good, but an and services such as blow-dry sa- Founder Fraser Ross and Chief employee said he had been told lons. Executive Christopher Lee left the Jan. 31, if not earlier. "The baby boomer generation chain a few weeks ago, according Near the original Kitson on will die off," he said, "and the next to a person familiar with the depar- Robertson Boulevard, Margaret generation is so used to shopping tures. Kitson did not make execu- Ochne, 35, fondly recalled buying online." tives available to speak. her first pair of "L.A. jeans" there Financial problems also hob- Ross embroiled the chain in a for $200 shortly after moving to bled the company. number of public spats that have the city. In 2013, the company received sometimes tumbled into litigation. But the West Hollywood physi- a $15-million credit line from Sa- In February, the company ac- cian hardly ever shops there any- lus Capital Partners to refinance its cused Hudson Group, the operator more. debts and provide working capital. of the LAX Kitson stores, of sell- "It's over-priced," she said with Salus is known as a lender of last ing expired candy at several airport a shrug. resort, extending loans to compa- shops and barring the boutique .